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    As the newly elected president, Trump has blamed illegal immigration for the country's housing affordability crisis. However, economists argue that this move could create negative consequences for the housing market, including a severe labor supply shortage in new homebuilding. Trump also plans to cut regulations and permit requirements that add unnecessary costs to new homes, but economists believe this won't solve the entire housing crisis.

    Mortgage rates are directly tied to 10-year Treasury bond yields, which tend to grow with investors forecasting stronger economic growth and higher inflation. Following Trump's victory, mortgage rates briefly rose to 6.98%. Economists and analysts believe that the President's economic agenda could lead to a surge in mortgage rates due to policies such as reducing tax rates, imposing tariffs on foreign goods, and easing regulations.

    Doug Bauer, CEO of Tri Pointe Homes, sees the lower corporate tax and eased regulations for banks as positives for the industry. However, he believes the core issue remains supply, and that a reduction in interest rates would unlock the resale market but not address new homebuilding issues. Ivy Zelman also appeared on CNBC, reiterating Bauer's point about the entry-level housing market weakness.

    To compile a list of the 10 best real estate and realty stocks to buy according to hedge funds, we used a stock screener to make an extended list of relevant companies with high market caps. We then shortlisted the top 10 stocks from our list which had the highest number of hedge fund holders.

    Here are the 10 best real estate and realty stocks to buy according to hedge funds:

    1. AvalonBay Communities, Inc. (NYSE:AVB) - 35 hedge fund holders

    Avalonbay is a leading multifamily real estate investment trust with a well-established portfolio focused on coastal markets.

    2. VICI Properties Inc. (NYSE:VICI) - 35 hedge fund holders

    VICI is an experiential REIT that owns one of the largest portfolios of market-leading gaming, hospitality, and entertainment destinations in the US.

    The other stocks on the list include:

    3. Simon Property Group Inc (NYSE:SPG)

    4. Prologis Inc. (NYSE:PLD)

    5. Equinix Inc (NASDAQ:EQIX)

    6. Welltower Inc. (NYSE:WELL)

    7. Cbre Group Inc. (NYSE:CBRE)

    8. CoStar Group Inc. (NASDAQ:CSGP)

    9. Digital Realty Trust Inc. (NYSE:DLR)

    10. American Tower Corporation (NYSE:AMT)